Is NFT Profit Taxable in Nigeria 2025? A Complete Guide to Tax Rules

Understanding NFTs and Taxation in Nigeria

Non-Fungible Tokens (NFTs) have gained massive popularity in Nigeria’s digital economy, but their tax implications remain unclear to many creators and investors. As of 2025, Nigeria’s Federal Inland Revenue Service (FIRS) has not introduced specific NFT tax laws, but existing tax frameworks apply to crypto-related profits.

Nigeria’s Tax Framework for Digital Assets in 2025

The Finance Act 2023 classifies cryptocurrencies as taxable assets, and this interpretation extends to NFTs in 2025. Key regulations include:

• Capital Gains Tax (CGT): 10% on profits from NFT sales held as investments
• Income Tax: Up to 24% for commercial NFT creators/traders
• Value Added Tax (VAT): Not currently applied to NFT transactions

How NFT Profits Are Taxed in 2025

Tax treatment depends on your NFT activities:

1. Casual Sellers: CGT applies if profit exceeds ₦500,000/year
2. Professional Creators: Income tax on minting/sales revenue
3. NFT Traders: Business income tax on trading profits
4. International Platforms: Must declare foreign-sourced NFT income

Reporting NFT Income to FIRS

Taxpayers must:

• Maintain records of all NFT transactions
• Convert crypto earnings to naira using CBN rates
• File through Self-Assessment Tax Portal
• Declare both realized and unrealized gains

Future of NFT Taxation in Nigeria

Experts predict these potential developments by 2025:

• Specific NFT tax guidelines from FIRS
• Revised CGT thresholds for digital assets
• Blockchain-based tax tracking systems
• Tax treaties for cross-border NFT transactions

NFT Tax FAQ: Nigeria 2025

Q: What tax rate applies to NFT profits?
A: 10% CGT for investments, up to 24% income tax for businesses.

Q: Can I deduct NFT creation costs?
A: Yes, professional creators can offset gas fees and platform charges.

Q: Are losses tax-deductible?
A: Only for registered NFT businesses through loss carry-forward.

Q: How are NFT gifts taxed?
A: Recipients pay 7.5% stamp duty on gifts exceeding ₦10,000 value.

Q: What penalties apply for non-compliance?
A: Up to 10% of tax due + 21% annual interest on late payments.

Preparing for NFT Taxes in 2025

NFT participants should:

1. Register with FIRS for Tax Identification Number
2. Use crypto tax software for portfolio tracking
3. Separate personal and NFT-related wallets
4. Consult certified tax advisors specializing in digital assets

While Nigeria’s NFT tax landscape remains fluid in 2025, proactive compliance helps avoid penalties. Always verify current regulations with official FIRS channels before filing returns.